Is A Promise To Pay Sufficient Consideration?

What is meant by legally sufficient consideration?

Legally sufficient means that the consideration consists of either: A promise by a party to do something he or she is not legally required to do.

A promise to refrain from doing something a party is allowed to do by law.

A promise for a party to do something he or she would not otherwise have an obligation to do..

Can Consideration move from a stranger?

Under the Indian Contract Act 1872 consideration for a contract may move from the promisee or any other person i.e. a stranger to the consideration can also enforce the contract.

What are the four types of consideration?

Common types of consideration include real or personal property, a return promise, some act, or a forbearance. Consideration or a valid substitute is required to have a contract.

What is a valid consideration?

Consideration is some thing of value promised by one party to another while entering into a contract. For a consideration to be valid there must be a promise from both sides. … This means that there must be a promise by one party against the promise of the other party.

Can a stranger to consideration sue on the contract?

Q) “ A stranger is consideration can sue, but a stranger to contract cannot sue” comment? A) Stranger to a Contract: It is a general law of contract that a person who is not a party of the contract cannot sue on it. This means that unless there is a privity of contract, a party cannot sue on a contract.

Can a promise be consideration?

In order for consideration to provide a valid basis for a contract — and remember that every valid contract must have consideration — each party must make a change in their “position.” Consideration is usually either the result of: a promise to do something you’re not legally obligated to do, or.

What are the exceptions to the rule of consideration?

An exception to this rule is where there is a duty owed to a third party. An act done before the giving of a promise to make a payment or to confer some other benefit can sometimes be consideration for the promise.

What are the types of consideration?

Kinds of ConsiderationExecutory Consideration or Future Consideration,Executed Consideration or Present Consideration, or.Past Consideration.

What is consideration explain?

1) payment or money. 2) a vital element in the law of contracts, consideration is a benefit which must be bargained for between the parties, and is the essential reason for a party entering into a contract. … In a contract, one consideration (thing given) is exchanged for another consideration.

Rules Governing Consideration in ContractsConsideration must Move at the Desire of the Promisor.Consideration may Move front the Promisee or any other Person.Consideration may be Past, Present or Future.Consideration need not be Adequate.Consideration must not be Illusory but should be Real.

What are the 3 requirements of consideration?

Each party must make a promise, perform an act, or forbear (refrain from doing something).

Does consideration have to be money?

First, consideration does not have to be money. It can be something of value, so it can be another object or a service. Second, what you bargain for does not have to meet anyone else’s standards of value and courts have consistently refused to weigh in on this subject.

What are the six types of consideration?

Me too!1.An offer made by the offerer.2.An acceptance of the offer by the offeree.Consideration in the form of money or a promise to do or not do something.Mutuality between parties to carry out the promises of the contract.Capacity of both parties in mind and age.Legality of terms and conditions.

Who is a stranger to consideration?

Thus difference between a stranger to consideration and a stranger to contract is that a stranger to consideration is a party to the contract but consideration is given by a third person. Whereas a stranger to contract is not at all a party to the contract, the contract is between other parties.

Is a promise to pay good consideration?

The past consideration is promise is made after the promise has done the performance. The past consideration is no good consideration. This rule is followed the idea of consider must be moved from promise.